"… people go wrong all the time. Instead of trading as they should today, based on their money now and their rules, they trade based on the money they once had. They are clearly trying to recoup. ‘How much money you used to have has no significance. It’s how much money you have now.’ " implored Eckhardt
(referring to William Eckhardt)

~ Michael W. Covel 
Author
Book: The Complete Turtle Trader
The Legend, the Lessons, the Results

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"Every winner needs to master three essential components of trading; a sound individual psychology, a logical trading system and good money management.

These essentials are like three legs of a stool – remove one and the stool will fall, together with the person who sits on it. Losers try to build a stool with only one leg, or two at the most.

They usually focus exclusively on trading systems. Your trades must be based on clearly defined rules. You have to analyze your feelings as you trade, to make sure that your decisions are intellectually sound. You have to structure your money management so that no string of losses can kick you out of the game."

~Dr. Alexander Elder

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Trading Success = Winning Psychology x Effective Money Management x A Trading Plan with An Edge

How do these elements assist the trader? As traders, our psychological state,
or mental mind-set, can lead to consistent profitability; our money management
ability determines the size of our position and bet size; and our trading plan
delivers the edge, defining how and when the edge occurs.

~ Ray Barros
Book: The Nature of Trends:
Strategies and Concepts for Successful Investing and Trading

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"I’ll keep reducing my trading size as long as I’m losing… My money management techniques are extremely conservative. I never risk anything approaching the total amount of money in my account, let alone my total funds."

~Randy McKay

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